There's just something special about a well-decorated, tasty cupcake. For some reason, biting into a cupcake can feel like munching on a novelty, and many people enjoy the fact that they are easier to transport and distribute than large cakes. With good planning and hard work, you can cash in on the demand for sweet treats by selling your cupcakes online.

Get Ready for Business

Perfect your cupcake recipes. To have success in this business, your cupcakes have to prove better than what the average person bakes at home. Developing your cupcake decorating skills may also translate into more sales. Some craft supply companies, community colleges and adult-education organizations provide cake decorating classes you can take to improve your skills.

Contact your local health department to learn the laws for preparing, storing and selling food in your jurisdiction. Some jurisdictions will allow you to start this business from home provided that your kitchen meets its requirements. Others, however, will not allow you to prepare and sell food unless you have a commercial kitchen.

Choose a location for running your online cupcake business. If your municipality allows you to run this business from home, you can save money on overhead by using your home kitchen. If you need a commercial facility, think about whether you want walk-in traffic, as well. If you want to sell online only, you may find a less expensive facility in an area that does not have a lot of passersby. However, if you want foot traffic, in addition to the online market, you need a busier location near other shops and businesses and you can usually expect higher overhead in such an area.

Obtain the licenses and permits required for starting this business. Depending on the jurisdiction, you will likely need a general business license and a food preparation permit. You can learn about the licensing requirements by contacting the agency responsible for licenses and inspections.

Obtain business liability insurance. This insurance covers claims that may arise if someone becomes ill after eating your cupcakes.

Find vendors for the ingredients you need to make and decorate your cupcakes, as well as packaging and shipping supplies. Purchasing in bulk may help keep your costs down.

Prepare for Online Selling

Create a website through which to sell your cupcakes and post photographs of the choices you are offering, as well as prices and descriptions of each type of cupcake.

Apply for a merchant account through which you can accept electronic payments. You may also use this account to accept e-checks and checks by phone.

Tip

If your municipality does not allow you to work out of your home kitchen, consider purchasing time in a church's or school's commercial kitchen. This way, you can use the space on an as-needed basis, without having to commit to paying for an entire facility.